Home Sweet Home: Invest in Home Building and Home Improvement

Home Sweet Home

If you think more and more people will say goodbye to mom and dad’s basement, and roll out a welcome mat of their own, Home Sweet Home could be an investment for you.

The home building industry didn’t fare well after the recession of 2008, but it’s going through a big growth spurt, which may continue given the massive number of people entering prime house-buying ages.

Why invest in home building?

A home is the largest purchase most people make in their lifetime, and home building is big business. The home industry got a beat-down thanks to the 2008 recession, but it has bounced back nicely. Population trends could keep fueling that growth, since the biggest groups of Americans are now 22-24, and are just on the verge of settling down and buying homes.

What companies does this investment include?

Home Sweet Home is an exchange-traded fund (ETF) called the SPDR S&P Homebuilders ETF (XHB). The fund includes over 40 companies in many parts of the home building industry.

Need someone to build you a house? NVR, Inc. has got you covered. Want to fix it up? Lowe’s Companies and Home Depot have over 4,000 stores with just about every home improvement product under the sun. Owens Corning insulation and A.O. Smith water heaters keep your home toasty-warm. Allegion and Fortune make doors and locks to keep you safe, as well as must-haves like plumbing fixtures. Masco provides cabinets and windows. And Helen of Troy fills your kitchen with Oxo products and PUR water filter systems.

To learn more about Home Sweet Home, visit the fund website. It has a low, 0.35% expense ratio, and the fund is managed by State Street Global Advisors, which has been around for 40 years, and manages $2.4 trillion.

What are some other Stash investments like this?

If you like the idea of investing in what you believe, here are some other Stash Investments to consider:

  • Water the World. Companies that supply the critical demand for water as the population grows.
  • Clean and Green. Clean energy companies including providers of solar and wind power.
  • Equality Works. Companies that provide LGBT employees with equal rights and respect.
  • Defending America. Aerospace and defense companies that help the military secure our skies.






Disclaimers
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. StashInvest assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. StashInvest does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis StashInvest uses from third party sources is believed to be reliable, StashInvest does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. StashInvest does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become StashInvest Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.